ISLAMABAD: The Federal Board of Revenue (FBR) is working on a simplified fixed tax scheme for small traders in the coming budget (2022-23).
Sources told Business Recorder on Monday that the new scheme would cover those small shopkeepers, who do not fall within the category of Tier-I (big retailers). During the last meeting of the Federation of Pakistan Chamber of Commerce and Industry (FPCCI) with Federal Minister for Finance and Revenue Miftah Ismail, the minister agreed to introduce a fixed tax scheme for small traders and resolve all taxation-related issues of business and trade.
When asked whether the government’s promise to introduce a fixed tax scheme for traders would have any impact on traders’ participation in the PTI Azadi March on May 25, All Pakistan Anjuman-e-Tajiran (APAT) Chairman Ajmal Baloch told Business Recorder that the fixed tax scheme to be announced by the present government has nothing to do with the protest. The traders having affiliation with the PTI would participate in the protest despite, commitment of the present government to introduce a fixed tax scheme, he added.
Last year, the FBR Member IR Operations announced that (i) the point of sale (POS) is not related to the small traders; (ii) the change in rate of advance tax on electricity bill as introduced in the Tax Laws (Third Amendment) Ordinance-2021 will not affect small traders; (iii) there would be no forced sales tax registration of small traders and (iv) the sales tax on electricity consumed by professionals will not affect commercial consumers of electricity.
Member (IR Operations) further informed in the past that all confusions and misunderstandings of small traders on the Tax Laws (Third Amendment) Ordinance were removed. “The Tax Laws (Third Amendment) Ordinance-2021 has nothing to do with the small traders,” the FBR Member added.
At that time, Member IR Operations categorically stated that POS did not pertain to small traders. While clarifying Section 114B of the Income Tax Ordinance-2001, Member IR Operations further informed that the general public is being misled by vested groups leading to believe that their electricity & gas connections will be disconnected and their mobile phones disabled.
He clarified that only those persons who are not appearing on ATL will face this treatment.
Copyright Business Recorder, 2022